National Milk Producers Make Progress on Modernizing Milk Pricing

The National Milk Producers Federation (NMPF) has reached another milestone in the ongoing effort to modernize milk pricing. After submitting a comprehensive proposal for Federal Milk Marketing Order (FMMO) reform, 150 meetings over two years and countless hours of effort, a concensus has emerged that holds benefits for farmers of all sizes across the country.

Some key improvements to the FMMO include:
1. Returning to the “higher of” Class I mover.
2. Discontinuing the use of barrel cheese in the protein component formula.
3. Updating milk component factors for protein, other solids and nonfat solids.
4. Updating the Class I differential price system to reflect changes in the cost of delivering bulk milk.
5. Updating dairy product manufacturing allowances in USDA milk price formulas.
6. Developing a process to ensure make-allowances are reviewed frequently through legislation and USDA conducts mandatory plant-cost studies every two years.
7. Extending the 30-day reporting limit to 25 days on forward-priced sales.

Read more on FMMO modernization and other NMPF efforts here.